Chapter 509: Good Money Drives Out Bad Money

With the circulation of the Chinese five-baht coin in Xiangyang, more and more merchants also use the Chinese five-baht coin as a standard for measuring other coins.

Because these merchants found that the weight of the Huaxia five-baht coin was surprisingly consistent, and the weight of any single one was almost the standard five-baht weight.

Arbitrarily pick out twenty-four Chinese five-baht coins, which is the standard one tael, and the points are exactly the same.

When a country circulates two currencies with different actual values but unchanged legal ratios at the same time, the currencies with high actual value (good money) will inevitably be melted, collected or exported and withdrawn from circulation, while the currency with low real value (bad money) will flood the market, which is the phenomenon of bad money driving out good money.

However, there is an important basis for the existence of the phenomenon of bad money driving out good money, that is, the determination of the legal ratio.

When Li Yan introduced the Huaxia five-baht coin in Xiangyang, although the value of the money was still five baht, when it was exchanged with other coins, it was not calculated according to the value of other coins, but according to the weight of other coins.

At the same time, when they sold some daily necessities, they designated that they could only use Huaxia five-baht coins to buy, and established a unified and new numismatic value system with a large number of materials.

Since the real world has long since abandoned the "gold standard" monetary system, everyone is more talking about the phenomenon of bad money driving out good money.

But in reality, if there is a completely free market, there is no legal exchange between the various currencies, and the real value of these currencies varies.

Currencies with higher gold content are considered hard currency, i.e., "good money";

Conversely, a currency with a lower gold content is considered a soft currency, i.e. a "bad currency".

People tend to be willing to accept hard currency, i.e., "good money", rather than soft currency, i.e., "bad money".

As a result, the superior wins the inferior and the inferior loses, forming a situation of "good money drives out bad money".

Good money drives out bad money, and the "gold content" of the currency itself must be guaranteed, and the price of steel in the five-baht coin in China has long exceeded the price of copper in another world.

Therefore, any kind of currency minted by other countries with a nominal value of five baht cannot compete with the Chinese five baht.

Everyone was only willing to accept the beautiful, weighty Chinese five-baht coins, and actively refused to use the other five-baht coins.

Even when the government collected taxes, they began to require the people and merchants to pay the five baht of Huaxia.

The government's recognition made the Huaxia five-baht coin the nominal legal tender of Xiangyang.

The large number of copper coins stored by those great families are also facing depreciation.

Because those copper coins have slowly become inedible in Xiangyang City, more and more merchants have begun to specify that only Huaxia five-baht coins are accepted.

If you do want to use other copper coins, it's not impossible, but everyone counts them according to their weight.

Moreover, since the merchant has to bear the cost of inviting someone to exchange it, the other five baht coins of the same weight of 162 Huaxia 5 baht coins can only be used as 160 Huaxia 5 baht coins.

The cost of these two Huaxia five-baht coins may not be much for those big families.

But for those who were previously attached to their names, it was a matter of two full meals.

As a result, the idea of those big families using rumors to isolate the villagers and the Chinese people was completely ruined.

As long as one person in a village goes to Xiangyang to buy daily necessities, he will soon bring back those exciting news.

"If you transport 100 catties of supplies a day, you can eat two full meals."

"If you transport 800 catties of materials a day, it only takes two days to buy a magical dress that can't be drenched in rain or blown by wind.

Moreover, this magical clothes are not afraid of getting dirty, and the muddy water splashed on it will be cleaned with clean water. ”

"That's not the only thing that magic garment does, if you tie the cuffs and the rope around your waist, it's warmer than wearing a few clothes.

Even this kind of clothing is very light and thin, and it can't be torn, otherwise, you won't have to freeze all winter. ”

"The things of Huaxia Kingdom are really good, what kind of warm clothes don't look very thick.

But according to the person who put it on, it was warmer than those thick cloth jackets.

Moreover, this kind of clothes and pants do not affect walking at all, but the price is a bit expensive. ”

"If it's warmer than a cloth, it should be more expensive.

But after all, someone has already worn it, which means that it is not expensive. ”

"That kind of set of clothes and pants is enough to be consistent, and it is the kind of five-baht coin minted in Huaxia.

You must know that one piece of money in Huaxia can eat a full meal. ”

"I asked, helping that Huaxia country do things, that is, children can eat two full meals a day.

They were paid according to the weight of the materials they were transporting, but each person could only transport a maximum of 800 catties of supplies per day.

The reward for transporting 800 catties of materials is 16 Huaxia coins, which means that it only takes ten days, and the earned remuneration can buy such a set of clothes and pants. ”

As soon as it was passed on to ten, ten to hundred, these farmers who had tasted the sweetness had long since put behind what those big families had said.

What kind of soul dementoring technique doesn't seem to have any effect on those people.

Moreover, in this world that depends on the sky for food, starving to death and freezing to death is far more terrible than losing one's soul.

As a result, a large number of farmers came out one after another and joined Li Yan's material handling army.

In the case of a large increase in the labor force, the working group once again imposed a limit on the daily transportation limit for each person, from 800 catties to 200 catties.

In other words, the farmers who joined later could earn up to four Huaxia dollars a day, and there was not much left except for the expenses of two or three meals.

The people who joined before, the daily decline in income also made them feel very uncomfortable, and just after seeing that the days were about to get better, those farmers came to rob everyone of their work.

But those people in Huaxia have already said that all those who have registered are not allowed to stir up trouble for no reason, otherwise, you will not do the rest of the work.

It's at least better to have a job than not to have a job, and the family's warm clothes and pants have long been placed, as long as food and clothing are not a problem, it is better than doing anything else.

The porters in Jingmen were attracted by life in Huaxia and decided to bring their families with them, rather than doing the job of loading goods on the docks.

Because in the four cities of Huaxia, there are more job opportunities, and those jobs pay more.

If the children in the family can pass the assessment of Huaxiaguo, it is equivalent to the whole family has security.

In addition to being able to rent a building at a very low price, each person also has a guaranteed income of 150 Huaxia yuan a month, which is enough to ensure that they have no worries about food and clothing.

But the people of Huaxia Country also said that the jobs on the dock cannot be lost, and if they want to work in other jobs in Huaxia Kingdom, they must find someone to replace their current jobs.